Sunday, July 10, 2011

Comments and outlook for 07-11-2011

If you have been following the thread of posts you know that there appears to have been a change in the dominance of cycles.  It appears that the 33-34TD cycle has resumed a dominance.  The 22TD cycle probably will still show some impact as it bottoms mid-month, but not to the extent as previously assumed.  The 33-34TD cycle should be topping and bottom about 18TD days from now (early Aug).

So Monday the 34TD cycle should be topping.  The 11.2TD cycle should also be topping.  As these 2 cycles top the 5.6TD  and 2.8TD cycles are bottoming.  The 1 year cycle bottoming was evidently more than offset by the strong up move by the 34TD cycle over the past few days.  As I mentioned the 22TD cycle should bottom mid-July.    Over all it looks like a sideways day for Monday with possibly a slight downside bias.  Note:  there may be negative news coming out of Italy which could add to downside pressure.

Here is a chart showing relevant shorter cycles (hope I have them properly positioned):

GL traders.  Watch for the bear.  Do your own analysis.

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